Reuters - Weak U.S. retail sales and a rise in producer prices to their highest annual rate in 27 years provided further evidence of "stagflation" in the world's largest economy on Tuesday.

AP - The U.S. economic downturn gained steam Tuesday, with a report of the highest inflation since the early 1980s, more bad news for banks and automakers and a suggestion by the Federal Reserve chief that worse days are ahead.

AP - Federal Reserve Chairman Ben Bernanke told Congress Tuesday the fragile economy is facing "numerous difficulties" despite the Fed's aggressive interest rate reductions and other fortifying steps.

AFP - With market turmoil intensifying on fears of a banking crisis, Federal Reserve chairman Ben Bernanke faced a new grilling Wednesday after warning of a bumpy road to economic recovery.

Reuters - Consumer spending may have slowed and U.S. retail sales are struggling, but the environment has not dampened J.C. Penney Co Inc's efforts to celebrate its latest brand launch in style.

AFP - US financial markets remained on tenterhooks on Tuesday as the banking sector faced a crisis of confidence even after an unprecedented government rescue of mortgage giants.

AP - Wall Street recouped its steep early losses and traded mixed Tuesday as oil dropped by more than $7 a barrel, giving investors hope that lower energy prices could help revive the flagging economy.

Reuters - Total sales at retailers rose a less-than-expected 0.1 percent in June, as auto sales had their biggest drop in more than two years, a Commerce Department showed on Tuesday.

AFP - The US economy is growing a bit faster than expected and could avert recession, Federal Reserve chairman Ben Bernanke indicated Tuesday, while citing a "critical" need to keep inflation expectations in check.